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NEW YORK--Alcoa Inc. today announced that it has commenced a tender offer (the “Offer”)
to purchase for cash any and all of its 4.25% Notes due 2007 (the “2007
Notes”).

The Offer is being made upon and is subject to the terms and conditions
set forth in the Offer to Purchase dated January 22, 2007 (the “Offer
to Purchase”) and the related Letter of
Transmittal. Under the terms of the Offer, the purchase price for each
$1,000 principal amount of 2007 Notes validly tendered and accepted for
payment will be based on a fixed spread of 10 basis points, or 0.10%,
over the yield to maturity based on the bid side price of the 4% U.S.
Treasury Note due August 31, 2007. The yield to maturity of the
reference U.S. Treasury Note used in the fixed spread formulas will be
set at 2:00 p.m. ET, on January 26, 2007 or a later date if the Offer is
extended (the “Price Determination Date”).

The Offer will expire at 5:00 p.m. ET on January 30, 2007, unless the
Offer is extended or earlier terminated. Tendered 2007 Notes may be
withdrawn at any time before the expiration time. Payment of the
purchase price for tendered Notes, plus accrued and unpaid interest up
to the date of payment, will be paid in same-day funds on the second New
York City business day following the expiration of the Offer or as soon
as practicable thereafter. It is expected that payment will be made on
February 1, 2007. Alcoa intends to raise proceeds through the issuance
of securities to pay for all, or a portion of the 2007 Notes purchased
pursuant to the Offer. Alcoa, however, may elect to use cash on hand or
available borrowing under its commercial paper program to pay for all,
or a portion of the 2007 Notes purchased pursuant to the Offer.

Subject to applicable law and certain provisions in the applicable
indenture governing the 2007 Notes, Alcoa may, in its sole discretion,
waive any condition applicable to the Offer and may extend or otherwise
amend the Offer. The Offer is not conditioned on a minimum amount of
2007 Notes being tendered.

Deutsche Bank Securities Inc. and JPMorgan Securities Inc. are acting as
Dealer Managers for the Offer. The Depositary and the Information Agent
in all places other than Luxembourg is Global Bondholder Services
Corporation. The Luxembourg Information Agent is Deutsche Bank
Luxembourg SA. Copies of the Offer to Purchase and related offering
materials are available by contacting the Information Agent at
866-736-2200 or the Luxembourg Information Agent at 00352-421-22-639.
Questions regarding the Offer should be directed to Deutsche Bank
Securities Inc., Liability Management Group at either 212-250-2955 or
866-627-0391 or JPMorgan at either 212-834-4802 or 866-834-4666.

This news release is neither an offer to purchase, an offer to sell nor
a solicitation of an offer to purchase or sell any securities. The Offer
is being made only pursuant to the Offer to Purchase and only in such
jurisdictions as is permitted under applicable law.

Alcoa is the world's leading producer and manager of primary aluminum,
fabricated aluminum and alumina facilities, and is active in all major
aspects of the industry. Alcoa serves the aerospace, automotive,
packaging, building and construction, commercial transportation and
industrial markets, bringing design, engineering, production and other
capabilities of Alcoa's businesses to customers. In addition to aluminum
products and components, Alcoa also markets consumer brands including
Reynolds Wrap® foils and plastic wraps, Alcoa®
wheels, and Baco® household wraps. Among its
other businesses are closures, fastening systems, precision castings,
and electrical distribution systems for cars and trucks. Alcoa has
124,000 employees in 44 countries and has been named one of the top most
sustainable corporations in the world at the World Economic Forum in
Davos, Switzerland. More information can be found at www.alcoa.com.

Forward Looking Statement

Certain statements in this release relate to future events and
expectations and as such constitute forward-looking statements involving
known and unknown risks and uncertainties that may cause actual results,
performance or achievements of Alcoa to be different from those
expressed or implied in the forward-looking statements. Important
factors that could cause actual results to differ materially from those
in the forward-looking statements include: (a) material adverse changes
in economic or aluminum industry conditions generally, including global
supply and demand conditions and prices for primary aluminum, alumina
and other products; (b) material adverse changes in the markets served
by Alcoa, including the transportation, building, construction,
distribution, packaging, industrial gas turbine and other markets; (c)
Alcoa's inability to mitigate impacts from increased energy and raw
materials costs, or other cost inflation; (d) Alcoa’s
inability to achieve the level of cash generation, margin improvements,
cost savings, or earnings or revenue growth anticipated by management;
(e) Alcoa's inability to complete its growth projects and integration of
acquired facilities as planned and by targeted completion dates; (f)
unfavorable changes in laws, governmental regulations or policies,
currency exchange rates or competitive factors in the countries in which
Alcoa operates; (g) significant legal proceedings or investigations
adverse to Alcoa, including environmental, product liability, safety and
health and other claims; and (h) the other risk factors summarized in
Alcoa's Form 10-K for the year ended December 31, 2005, Forms 10-Q for
the quarters ended March 31, 2006, June 30, 2006 and September 30, 2006
and other reports filed with the Securities and Exchange Commission.